Is crypto legal in Kenya?

Yes, crypto is legal in Kenya. Since November 2025 the country has had a dedicated law, the Virtual Asset Service Providers Act 2025, which requires crypto exchanges, wallet providers and similar firms to be licensed. As of October 2026 the licensing system is still being put into operation.

What is Kenya's Virtual Asset Service Providers Act 2025?

Parliament passed the Act on October 7, 2025 and the President signed it on October 15, according to the law firm Bowmans. It was published in the Kenya Gazette on October 21 and took effect on November 4, 2025, the Central Bank of Kenya (CBK) said.

The Act names two regulators. The CBK and the Capital Markets Authority (CMA) each license providers depending on the type of service. Bowmans says the regime is expected to cover exchanges, trading platforms, wallet providers, stablecoin issuers and the tokenization of real-world assets. Licensed firms must run identity checks, monitor transactions and submit to inspections, in line with global anti-money-laundering rules.

How does crypto regulation in Kenya work in 2026?

Licensing needed detailed rules first. In public notices published in November 2025, the CBK and CMA said they had not yet licensed any provider under the Act, and that licensing would begin once the Treasury issued regulations.

Those regulations, the Virtual Asset Service Providers Regulations 2026, were circulated on July 22, 2026. Bowmans reports that they set minimum capital by type of business, apply to offshore firms that target Kenyan customers, and give applicants until November 2026 to comply, with no grandfathering for existing operators. Anyone unsure whether a platform is authorized can check with the CBK or CMA directly. Unlicensed platforms are a frequent vehicle for fraud, as covered in how to spot a fake crypto exchange.

How is crypto taxed in Kenya?

Kenya introduced a 3% digital asset tax in its Finance Act 2023, charged on the value of crypto transfers and exchanges. Members of Parliament voted in June 2025 to drop it, Business Daily reported. According to Deloitte, the Finance Act 2025 repealed the 3% levy and introduced a 10% excise duty on the fees that crypto providers charge for transactions.

That means the tax now falls on the service fee rather than the full amount traded. Deloitte notes that gaps remain in how the excise rules apply to crypto, so the Kenya Revenue Authority's guidance is the reference for individual cases.

Is cryptocurrency legal tender in Kenya?

Legal does not mean legal tender. The Act regulates the businesses that deal in crypto, covering their licenses, capital and customer checks. It does not turn crypto into official money. The difference is explained in is cryptocurrency legal.

Rules differ by country and change often. Check the tax authority or a qualified professional for your own situation.